Credit: REUTERS/BERNADETT SZABOBy Anita Komuves
BUDAPEST, Aug 28 (Reuters) - Most Central European currencies firmed and the forint recouped some of its recent losses on Friday as the dollar slid after U.S. Federal Reserve chairman Jerome Powell announced a policy shift on inflation.
The Hungarian forint EURHUF= weakened for two weeks and touched two-month lows in the previous session. On Friday it edged up 0.17% to trade at 355.88 per euro.
"Based on the technical picture I expect a correction in the EUR/HUF exchange rate which could firm back as far as 352.5," an FX trader in Budapest said.
"Macroeconomic data spoiled investors' mood lately but those numbers will get better in the next quarter. A lot will depend on the September inflation report of the central bank."
The currency broke away from its regional peers in mid-August as it came under pressure from dismal Hungarian GDP data, high inflation and loose monetary policy.
Inflation came in at a higher-than-expected annual 3.8% in July and GDP dropped by 13.6% year-on-year in Q2.
The Romanian leu EURRON= was little moved and trading at 4.8395 per euro ahead of a vote of no confidence against the government of Ludovic Orban on Monday.
The vote adds to years of political instability that have kept the currency under pressure.
"If the vote of no confidence was going to be successful this might put pressure on the leu, at least short term," Commerzbank said in a note.
"In this case Orban’s government will continue governing until the parliamentary elections in December, and as a result the effects on the leu are likely to be limited."
Elsewhere, the Czech crown EURCZK= firmed 0.1% and was trading at 26.260 versus the common currency. The Polish zloty EURPLN= firmed 0.17% to 4.4059 per euro.
Stocks in the region were mixed, with Prague's equities .PX up 0.25% and Budapest .BUX sliding 0.91%. Warsaw's index .WIG20 was down 0.28% while Bucharest's stock market .BETI edged up 0.03%.
CEE MARKETSSNAPSHOTAT 1052 CETCURRENCIESLatest Previous Daily Change bid close change in 2020 EURCZK=Czech crown EURCZK= 26.260026.2850+0.10%-3.15%EURHUF=Hungary forint EURHUF= 355.8800356.5000+0.17%-6.95%EURPLN=Polish zloty EURPLN= 4.40594.4132+0.17%-3.39%EURRON=Romanian leu EURRON= 4.83954.8385-0.02%-1.06%EURHRK=Croatian kuna EURHRK= 7.52507.5265+0.02%-1.06%EURRSD=Serbian dinar EURRSD= 117.5000117.6000+0.09%+0.06%Note: daily change calculated from 1800 CETLatest Previous Daily Change close change in 2020 .PXPrague .PX 906.15903.8800+0.25%-18.78%.BUXBudapest .BUX 35148.4235470.36-0.91%-23.73%.WIG20Warsaw .WIG20 1841.401846.50-0.28%-14.36%.BETIBucharest .BETI 8877.308874.51+0.03%-11.03%.SBITOPLjubljana .SBITOP 852.43853.53-0.13%-7.93%.CRBEXZagreb .CRBEX 1614.161616.34-0.13%-19.99%.BELEX15Belgrade .BELEX15 692.58690.44+0.31%-13.61%.SOFIXSofia .SOFIX 430.27430.86-0.14%-24.27%Yield Yield Spread Daily (bid) change vs Bund change in Czech Republic spread CZ2YT=RR2-year CZ2YT=RR 0.1350-0.0470+078bps -4bps CZ5YT=RR5-year CZ5YT=RR 0.6700-0.0510+130bps -5bps CZ10YT=RR10-year CZ10YT=RR 1.0260-0.0260+141bps -5bps Poland PL2YT=RR2-year PL2YT=RR 0.1430-0.0010+079bps +0bps PL5YT=RR5-year PL5YT=RR 0.79500.0190+143bps +2bps PL10YT=RR10-year PL10YT=RR 1.41800.0430+180bps +2bps FORWARD3x6 6x9 9x12 3M interbank Czech Rep CZKFRAPRIBOR= 0.370.390.460.34Hungary HUFFRABUBOR= 0.770.860.930.62Poland PLNFRAWIBOR= 0.250.260.270.23Note: FRA quotes are for ask prices **************************************************************(Additional reporting by Jason Hovet in Prague. Editing by Carmel Crimmins) ((komuves.anita@thomsonreuters.com (+36 70 795 8815)) |
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